ECTS credits ECTS credits: 4.5
ECTS Hours Rules/Memories Student's work ECTS: 76.5 Hours of tutorials: 4.5 Expository Class: 13.5 Interactive Classroom: 18 Total: 112.5
Use languages Spanish, Galician, English
Type: Ordinary subject Master’s Degree RD 1393/2007 - 822/2021
Departments: Financial Economics and Accounting
Areas: Financial Economics and Accounting
Center Faculty of Business Administration and Management
Call: Second Semester
Teaching: Sin docencia (Extinguida)
Enrolment: No Matriculable | 1st year (Yes)
This subject pursues the following objectives:
- Understand the role of finance and finance department in the process of corporate risk management.
- Conduct an analysis of the risks affecting the company.
- Know the products available to the company to carry out a policy of risk management.
- Analyze the risk of business operations.
- Quantify the exchange and interest rate risks and design hedging strategies.
- Understand the fundamentals of the companies that operate internationally.
- Making a diagnosis of the company in crisis and develop a feasibility plan through a financial simulation models.
With this aim the subject is structured in 5 units. In the first, risk measurement and modelling is addressed in a generic way. Then in unit 2 instruments and techniques of financial risk management, including derivatives, are analyzed. Then we move into the analysis of different financial risks, in particular default risk, interest rate risk and exchange rate risk and the processes of crisis and reorganization are also addressed with a focus on the development of the viability plan.
UNIT 1: CORPORATE RISK
UNIT 2: PRODUCTS FOR CORPORATE RISK MANAGEMENT
UNIT 3: DEFAULT RISK MANAGEMENT
UNIT 4: INTEREST RATE RISK MANAGEMENT
UNIT 5: CORPORATE INTERNATIONAL FINANCE AND EXCHANGE RATE RISK MANAGEMENT
FINANCIAL RISK
Day, A. (2012): Mastering Financial Modeling, Pearson.
Durán y Otero (2010): Análisis financiero dinámico, Cuadernos de la Fundación Mapfre
Holden, C. (2012): Excel Modeling in Corporate Finance, Pearson.
Jackson y Staunton (2005): Advanced Modelling in finance using excel and VBA , Wiley.
Jorion (2009): Financial Risk Manager Handbook, Wiley.
Mun, J. (2008): Modeling Risk, Wiley
Ferruz, Portillo y Sarto (2009): Dirección financiera del riesgo de interés, Pirámide
Fernández y Partal (2010): Gestión y control del riesgo de crédito en la Banca, Ed. Delta.
Charnes (2007): Financial modeling with Crystal Ball and Excel. Wiley
Scott (2010): Building financial models with Microsoft Excel : a guide for business professionals, Wiley.
DERIVATIVE PRODUCTS
Castellanos E. (2012) Opciones y futuros sobre renta variable: manual práctico. Editorial BME.
Díez de Castro y Mascareñas (1994) ” Ingeniería Financiera”
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional
Hull,J (2009): Mercados de futuros y opciones, Pearson-Prentice Hall.
Knop, R (2003): Derivados de crédito, Ediciones Pirámide.
Knop, R (2006): Manual de instrumentos derivados, EFA.
Lamothe,P et al. (2006) “Opciones financieras y productos estructurados”, (1994) “Swaps y otros derivados OTC”
Martín Marín y Trujillo Ponce (2004) “ Manual de Mercados Financieros”
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
DEFAULT RISK
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional
HULL,J (2004) Opciones y futuros.Mc Graw Hill
JORION, P. (2009); Financial Risk Manager Handbook, 5th Edition, Wiley (Finance),
Knop, R (2003): Derivados de crédito, Ediciones Pirámide.
Lamothe,P et al. (2006) “Opciones financieras y productos estructurados”, McGraw Hill
Lando, D. (2004), Credit Risk Modeling: Theory and Applications, Princeton University Press.
Loffler and Posch (2007): Credit risk modeling using excel and VBA, John Wiley&Sons
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
Saunders, A. and Allen, L. (2002), Credit Risk Measurement: New Approaches to Value at Risk and Other Paradigms, 2nd edition, Wiley.
Tomás et al. (2008): Cómo analizan las entidades financieras a sus clientes, Gestión2000.
Garrido, V. (2012): Modificaciones estructurales y reestructuración empresarial, Dykinson.
INTEREST RATES
HULL,J (2010): Introducción a los mercados de futuros y opciones, Pearson Prentice Hall
JORION, P (2010): Financial Risk Management Handbook, Wiley.
Fabozzi, F (2001): Handbook of fixed income securities, McGraw Hill Profesional.
Knop, R et al. (2006): Instrumentos de renta fija, Ariel
Martínez Abascal y Guasch (2004): Gestión de carteras de renta fija, McGraw-Hill Profesional
Knop et al. (2008): Activos de renta fija. Pirámide.
EXCHANGE RATES
Eiteman et al. (2010): Las finanzas de las empresas multinacionales, Ed. Pearson
Eun y Resnik (2007): Gestión financiera internacional, Mc Graw Hill
Madura, J (2003): International financial management, Thomson
Martín Marín, J.L. (2006): Finanzas Internacionales, Ed Thompson
Shapiro (2009) Multinational Financial Management, John Wiley.
Competences of the Master to which the subject contributes:
- Capacity to apply the acquired knowledge to corporate reality.
- Capacity to solve problems in new and badly known contexts.
- Capacity to design integrated management projects or of functional areas of the firm.
- Command on different management tools, instruments and methods necessary to run the company.
- Capacity to identify, gather and interpret relevant data about issues related to corporate risk management.
- Capacity to communicate information, ideas, corporate financial management problems and proposals of solutions, making use of verbal and written language and of presentation techniques, either to specialized publics or non-specialized ones.
- Capacity to continue with autonomous learning.
- Capacity to develop the financial management of a company.
- Cross-disciplinary skills: capacity of analysis and synthesis, organization and planning and to integrate and work into teams of diverse composition.
Specific competences of the subject:
- To know the role of Finance and of the Financial Department in the process of corporate risk management.
- To make an analysis of the risks affecting the firm.
- To know the products at the company’s disposal to undertake a policy of risk management.
- To analyse the risk of commercial operations.
- To quantify market and interest rate risks.
- To know the essentials of companies operating at an international level.
- To know the management of exchange rate risk.
- To make a diagnosis of the company at crisis and develop a viability plan through a model of financial simulation.
Being a subject of a Master, it is especially important that the student notes the applicability of its contents. The development of the theoretical contents will be accompanied by multiple examples and the solving of case studies, and solutions will be searched individually and/or in small working teams. In this way the student will reach a better understanding and a higher motivation, as consequence of his/her involvement with the learning process. An important part of the subject will be given at the computer room, which will allow a better monitoring of the students’ progress, as well as to develop new abilities and skills. Furthermore, the review of bibliographic sources will be promoted in order to help the student having a more integral view and to improve the deepening into those topics that can be more interesting. The English language will be used in lectures and in the assessment process (Lugo).
Students will receive the support of the virtual campus of the USC through the virtual classroom of the subject, in which the periodic programming of the classes and the corresponding supporting material will be offered, both for the lecture and interactive sessions.
Taking into account the USC's “GUIDELINES FOR THE DEVELOPMENT OF SAFE CLASSROOM TEACHING AT COURSE 2020-2021”, this teaching methodology will be respected in the three alternative scenarios foreseen (Scenario 1: adapted normality, Scenario 2: distancing and Scenario 3: closure of the facilities), adjusting only as to the face-to-face character or not of teaching. In scenario 1, both lectures and interactive teaching will be developed at classroom, considering the possibility that, in an exceptional and justified way, virtual teaching will be combined with classroom teaching up to a maximum of 10% of the hours of the subject. In scenario 2, lectures will be taught virtually in synchronous mode and the interactive sessions through classroom teaching, considering the possibility of teaching up to 50% of the practical hours of the subject in a virtual and synchronous way. In scenario 3, both lectures and interactive sessions will be taught virtually synchronously. Teaching in synchronous mode will be done through MS Teams. Depending on the circumstances, the possibility of asynchronously developing contents through video-recorded sessions and made available to students respecting official schedules is also envisaged.
The tutorial support will be carried out preferably in person in scenario 1, preferably virtual in scenario 2, and exclusively virtual in scenario 3, using email, virtual classroom messaging or forums and MS Teams as telematic communication channels.
In the first opportunity, two alternative evaluation systems are foreseen, both for students taking the subject for the first time and for repeating students:
- A continuous evaluation system, in which during the semester the students will develop various evaluation activities that will allow them to pass the subject without having to take a final exam. Three types of evaluation activities are included in this system:
o Theoretical-practical tests: two tests will be carried out throughout the course, in the usual class time, covering all the contents of the subject. They will account for 30% of the final grade.
o Spreadsheet test: during class time, a test will be carried out to assess the skill in handling the spreadsheet for the analysis of international financial management decisions. It will account for 30% of the final grade.
o Works related to the content of the different topics that make up the program or others of relevance in the field of the subject, for which a deadline will be set. They will contribute 40% of the final grade.
- A unique assessment system, consisting of taking a theoretical-practical final exam on the established official date, which will represent 100% of the final grade, reserved for those students who, for reasons listed in Instruction nº1 / 2017 of the USC Secretaría Xeral, request and obtain a class attendance exemption, as well as for those who do not pass under the continuous evaluation system.
In the second opportunity, the evaluation is only contemplated through the completion of a final exam. In any of the modalities it will be necessary to obtain a grade equal to or greater than 5 to pass the subject.
In scenario 1, all evaluation activities will be carried out in person, except for those for which a delivery deadline is set. In scenario 2, face-to-face and telematic evaluation activities will be combined, and the final theoretical-practical test will be face-to-face or telematic according to the guidelines established by the Dean's Office or the Rectorate and the sanitary measures established at that time. In scenario 3, all evaluation activities will be telematic. All evaluation activities, in any scenario, will be carried out synchronously, except for those for which a delivery deadline is set.
In cases of fraudulent performance of exercises or tests, the provisions of the Regulations for the evaluation of student academic performance and review of grades will apply.
Competence assessment: The alternative activities integrated in the evaluation system contribute in different ways and with different intensity to the achievement of all the competences listed in the competence section.
PERSONAL WORK AT THE CLASSROOM
Classroom session in groups: 10 hours
Seminars in groups: 22 hours
Tutorship in very small groups: 8 hours
Evaluation at the classroom: 5 hours
TOTAL PERSONAL WORK AT THE CLASSROOM: 45 HOURS
PERSONAL WORK OF THE STUDENT
Autonomous study, individual or in group: 27,5 hours
Writing exercises, conclusions or other essays: 10 hours
Recommended readings, activities at a library or similar: 20 hours
Preparation of oral presentations, debates or similar: 10 hours
TOTAL PERSONAL WORK OF THE STUDENT: 67,5 HOURS
Basic knowledge on Finance is required. It is considered of critical importance to attend to the lectures as a way of understanding and assimilating the subject contents. With regard to the non-lecture hours, the student will have to invest hours for the revision of the contents presented at the classroom, and to apply and consolidate the knowledge through problems resolution, as well as to deep into the concepts through the bibliographic revision. With a constant work during the four-month period the study for the final exam should not imply an excessive number of study hours.
It is as well recommended to make use of the tutor hours in order to solve doubts or clarify concepts. On the other hand, given the important role of the Excel applications for this subject, the student is advised to improve his skills both with his personal effort as well as with the tutor hours.
A minimum level B1 of use of the English language is required (Lugo).
The course will be conducted in English (Lugo).
Contingency plan
In accordance with the Agreement of the Governing Council of June 19, 2020, which regulates the bases for the development of teaching during the academic year 2020-2021, and in order to minimize the impact of a possible new response against COVID -19, the program incorporates a contingency plan that includes scenario 2 (distancing) and scenario 3 (closure of facilities). All the teaching, evaluation and tutoring activities will be carried out in person or remotely (through Teams and with the support of the virtual classroom), depending on the scenario decreed by the USC, which may also affect the schedule timing. In all the scenarios, the initial work planning will be respected (both in terms of content and evaluation activities). When the teaching is to be remote, it will be carried out synchronously, recording the sessions to facilitate their accessibility by the students. Depending on the circumstances, the possibility of developing content asynchronously through video-recorded sessions and made available to students respecting official schedules is also envisaged. Telematic tutorials may be channelled through email, virtual classroom messaging or forums and, upon request, through individual or group online tutorial sessions (Teams). In the sections on teaching methodology and evaluation system, the adaptations foreseen in the alternative scenarios are detailed.
Juan Ramon Piñeiro Chousa
- Department
- Financial Economics and Accounting
- Area
- Financial Economics and Accounting
- j.pineiro [at] usc.es
- Category
- Professor: University Lecturer
Noelia Maria Romero Castro
Coordinador/a- Department
- Financial Economics and Accounting
- Area
- Financial Economics and Accounting
- Phone
- 982824478
- noe.romero [at] usc.es
- Category
- Professor: Temporary PhD professor
| Tuesday | |||
|---|---|---|---|
| 17:30-19:00 | Grupo /CLE_01 | English | Computer room 1 |
| 19:00-21:00 | Grupo /CLIS_01 | English | Computer room 1 |